The laws, regulations, and rulings that are common to all cooperative education programs and that frequently present problems to coordinators, faculty, administrators, and employers are briefly explained. The objective is to provide coordinators of cooperative programs in education, business, industry, and government with a discussion of the current interpretation of these laws by the various government agencies involved. Contents are as follows: Uniform Guidelines on Employee Selection Procedure, unpaid cooperative assignments, unemployment compensation, discrimination against aliens, workmen's compensation, social security benefits, employment of foreign students, V.A. benefits, and reciprocity for motor vehicles licenses. The federal government and the courts have both defined the college placement function as an employment agency or service within the Title VII definition. The fundamental principle underlying the employee selection guidelines is that employer policies or procedures that have an adverse impact on employment opportunities of any race, sex, or ethnic group are illegal under Title VII unless justified by business necessity. The guidelines adopt a rule of thumb known as the "80 percent rule" for determining adverse impact for use in enforcement proceedings. The guidelines apply to selection procedures that are used as a basis for any employment decision, including referral. Unpaid cooperative assignments are covered either by the Fair Labor Standards Act, state statutes, or federal Department of Labor regulations. Some cases have to be handled on an individual basis. Cooperative students are not eligible for unemployment compensation but in most states are covered by the employer's workmen's compensation for injuries. (SW)